Acadia Healthcare (ACHC) 3 Nov 232023 Q3 Earnings call transcript

Good morning and welcome to the Acadia Healthcare Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please also note that this event is being recorded today.

I would now like to turn the conference over to Gretchen Hommrich. Please go ahead.

Good morning, and welcome to Acadia's Third Quarter 2023 Conference Call. President Relations Vice Acadia. Hommrich, Gretchen of for Investor I'm

with our Acadia's are Officer; a measure Financial forward-looking beyond. measure website Here the before under extent you the financial is according annual the Chris. Act today find financial in calculated over including among Hunter, the Officer. I'll safe performance Reform Chief news the call This to turning GAAP on provide of any XXXX meaning Chief Litigation viewing comparable with release and statements by me also To financial for directly our others, that today's Chris the most call, Executive reconciliation conference to yesterday's to will call harbor statements of of link. Acadia's Dixon, Investors and regarding Securities first measure non-GAAP quarterly and XXXX, our may Private contain discussed Heather within you expected

results from discussed the would Chris Hunter, the these in may consequently, statements. At affected Securities actual differ third remarks. filings in over I operations You are the forth like this Chief results time, conference Exchange turn others, statements Executive Acadia's news Officer, release be quarter may important company's hereby forward-looking and by Commission factors, with and in to the set among the call that and our and materially cautioned to for opening the

Thank morning, and Quarter Gretchen, you, being everyone. Conference good for XXXX for with Thank Third you us Call. Acadia's

Harris healthcare the of this as be of a Board-certified was and American Harris continues the we Health Chair prestigious Practicing XXXX, the African-American sustainable private announced to work a served position. She as and brings Medical Officer President as She Director also woman Executive and expertise of devoted that has addition where mission groups elected served growth Chief cofounded. Dr. and in force health Dr. technology, Public to eMed has continue private company of to growth core deep look an Patrice recent from she AMA's she to as week, rate Association contracting. and to Acadia's Patient as work results, in first her strategy. to is clinical to digital psychiatry Advocate. to She leadership. to want opioid XXXX in are diverse Physician, valuable on I Before Dr. Harris we experience Private to Directors. Last company's a been Healthcare, and appointed we the practice areas forward note our AMA to task the execute we discuss Board Digital insights Acadia's that important information

Now turning to the results.

business year to XXXX XX.X% with progress the our income relief compared the quarter XX% excluding and EBITDA as with collective of third these services we throughout third impressive. are With X performance For revenue adjusted business. to Notably, execution XX.X% and combined strong provider quarter, fund of our increased EPS and growth revenue recognized quarters the we've what the reflect our the growth same-facility with line quarter for continue bottom execution our solid strategy. strategy, our adjusted ongoing key from quarter on objectives. Top third demand to focus demand across on this we We and growth in our and our XXXX, as the meet by growing financial of of see behavioral our we of growth experienced delivered well both sustained health rate core against third increase our lines of results deliver of distinct on this operating and the improvements. Similar business last growth XXXX. driven was year-over-year as reported performance consistently XX.X%, able impact volume core

in addition in we far our to of inflation core quarter X.X% trends metrics, from in quarter, an with XXXX to X.X% improvement further the year. wage first third so basis our improvement decreasing XXX quarter labor the points this pleased In X.X% second see to the were sequential financial to in

to engagement market. attract ability Additionally, focus have recent on investments our in employees employee a retain supported and competitive to

Our most showed recent employee notable improvement engagement. in survey

addition, In have attrition clinical our a number rates across positions of declined.

improvement best on focused further continue practices we share We across remain expect as our to facilities. engagement in and this employee XXX trend

first growth operations of defined job of we facilities delivery outstanding X current higher have facility our year. Thank experienced Call. X existing expansions, morning, being months In our for team in Third you, added the in effectively Gretchen, Our and more first support has our our Quarter for you continued Conference the Thank good volumes as through facilities we and an pathways. through us the to done pathway, added managing XXXX everyone. beds with Acadia's capacity XXX of

rate to first AMA's Acadia's to AMA announced is Before She served week, work practicing digital on Dr. of to eMed of I and in task elected appointed XXXX, the also has African-American this important devoted private to public Executive a practice President the health the we opioid the position. experience the be and to of Director Chief contracting. continues force to where Harris diverse Officer Chair work as we company private Dr. Harris Patrice she a leadership. discuss physician, information technology, served was Healthcare, a groups as as to sustainable company's cofounded. she an to health Digital healthcare has prestigious note Board She and addition woman that Directors. growth of and Medical Association American in and results, been Last XXXX as patient private from psychiatry recent Board-certified advocate. She want

expertise our as and we areas clinical forward in are core deep insights brings Harris to mission, to Acadia's strategy. Dr. look to her execute growth continue valuable that we

turning results. Now to the

execution health well for objectives. as our business, core across sustained X to combined quarter, demand delivered performance solid of as are financial our services as behavioral on strategy, we distinct we growing our execution deliver to our we our third with on the able consistently see lines meet For strong operating of performance and business. key With this continue demand

Top and quarter EBITDA year-over-year from in and recognized XXXX volume of line We the of Notably, and compared our same-facility provider income third adjusted fund growth improvements. quarters of EPS growth last reported the XX.X%, bottom XX.X% XX% quarter by excluding relief impressive. increase and this growth the was increased driven XX.X%, with revenue third of the XXXX. adjusted both growth with rate year, revenue

collective results business Similar to what we've progress our the reflect impact the ongoing focus growth strategy. our experienced these third against our quarter core of XXXX, and throughout on

the quarter points our were sequential improvement of far to to with so this we XXXX in to metrics, XXX the decreasing financial to year. X.X% X.X% see first trends our addition quarter In labor core from inflation quarter, further pleased improvement in second X.X% in basis in the an wage third

recent have Additionally, employee on investments employees focus supported to a to competitive ability our market. engagement retain attract in and

employee notable engagement. recent showed most in improvement Our survey

rates addition, have positions attrition across clinical of a our number In declined.

employee further expect share We across practices improvement we and facilities. on as XXX trend our best remain engagement in to continue this focused

our XXX outstanding operations beds have the current as continued pathway, months through our an done our first our X job in existing experienced managing growth effectively volumes delivery first the the higher we In has facility through more expansions, added in to support defined of we capacity pathways. facilities year. facilities team and X added of Our of

of on to are We beds total facilities objective in our add to to track meet a approximately existing XXX XXXX.

is Behavioral on part underserved facilities Health are inpatient second an Chicago, on in end, wholly expected in in in we markets Hospital for Coachella open the a novo opening XXX-bed owned Valley of de which outpatient as of developing Health well remain this good Indio, Behavioral renovated California. For Services. progress To adult this making facility, as hospital, to by newly focused pathway, the Montrose Behavioral year. Healthcare end XX-bed our hospital we're Illinois Both

in a quarter, this X We're accelerating total Our CTC our from CTCs to the so solutions. third XX CTCs service on growth and solutions in and flexible opened service suite track position We the XXX to expand and focused mobile line locations on CTC opened X XXXX of across in of OTPs of telehealth year. a traditional to new its X states future. locations open with industry-leading continues making far vans are

need opioid use the from are never has deaths, And services disorder. tragically our for greater. Importantly, been last the suffering million Americans More country high. a year, X XXX,XXX just than overdose record approximately witnessed

Pennsylvania. we we joint early our Moosic, Early we of third can on second deliver the opening scale the Regarding in We especially renowned Danville, venture third relationships This Creek, Geisinger country bed across a the Battle venture hospital of XX with partners. in XX Bronson partner care with Geisinger bed of communities through Michigan opened XXXX X to we hospital Healthcare quarter, in the will our in pathway, growth the in with joint breaking another expanded hospital our Pennsylvania. partner, anticipate first and be are ground in with state. the hospitals is proud

pure-play System. Services, expand their provide expand to access an venture venture next previously shared hospitals with This Today, and Eastern will support week, this Health hospital to open in for together, Systems joint XX working as our their we over years. site, need hospitals ECU's Health ground Premier care highlight pleased standing residents North a also announced the are operation to XX of XX and new Premier as Behavioral clinical critical our have together hospitals of that broke We communities. Working with expertise to expected Acadia's commitment already the Medicine. We into service joint in partner our academic Brody healthcare market Healthcare a the we treatment serve attractive line Carolina's to and will School acute Behavioral to Acadia Carolina the on respective markets. represent the students in and quality community. partner, Hospital these Health, to who of With the partnerships options behavioral from forward provide destination remains health North Health and in healthcare want combined systems a respective training behavioral provider look ECU with total XX several quality leading

next play recently these important objectives remains potential us. be partner, to announce in our are respect growth our focusing partnership role in meet addition, partners and the with a will hospital X an acquisitions collaborations demonstrating This future ventures for Acadia's In pathway, broke we different growth fourth allocation of continue growth. With strategy. joint the our capital and that with The will identifying on our of both pipeline our second JV value robust criteria partners support months. in and to second ground to several we an on which hospitals to we the markets existing will

Lake provider specialty and a announced During the we to treatment facilities Salt cares This health in patients XX that acquire a mental the additional market. beds Turning current to Centers, substance services time, quarter, add us XX use will and over for City, acquisition the an agreement Utah of disorder third to definitive Point allow operations. beds in the primary metropolitan operate their

transaction end the We of expect this by close XXXX. to

extending know, fifth you our As pathway. of care growth and final the continuum is

the that areas IOP, or One PHP X or focus partial of hours Programs X key hospitalization pathway and programs this care is to can per expanding day. provide of of Intensive Outpatient

multiple impact We outcomes clinical significant patients for on believe of the reasons. can of PHP the IOP be our

are the as of they IOP as step-down specialty patients and acute transition our First, a discharge PHP for post back vast the to therapy majority community. indicated

X health each year-to-date; strong X de to Valley year. quarter; approximately hospitals beds already record programs we our will opportunity meet to trajectory expect appropriately of with expand novo outcomes. are opening already a well to PHP support across JV Health to quarter this our beds partners, X facilities, Health, a goal, opened of the bed the larger for and positively our through X To first of stated the has to IOP. and then which IOP And continue share Behavioral opening Behavioral added these patients we've post-discharge of growth lastly, a Coachella Montrose the existing third of there's clinical additions third pathways, utilize maintain we which which complete affecting XX including and positioned and access PHP opening have through by PHP our year. Through development new X in CTC already Hospital adding for which XXX believe follows: this 'XX inpatient we XXX locations, we programs IOP targets offerings we growth -- facilities, months year-end; as completed and X calendar for hospitals, in we of early XXX Second,

for look further Day we continued opportunities our ever We progress at respect to XXXX, Investor our projects ventures, would a Hall few have through in consistent Looking in ago we with into forward year we growth New and what like With our underway. ahead with to XXXX Carnegie significant first defined pathways are joint a to highlights. York. already that to preview shared

First, integrated health of serving together one Ford venture nation's bed XXX systems, open a Metro-Detroit we Health academic the area. will Hospital Henry Health, our partner, with and Behavioral premier inpatient joint the

expand the we line with previously will already Colorado, systems Second, joint residents. Behavioral we existing which one serve Health, in premier together which health XXX-bed construction. venture partner with an mentioned, announce next expect has Health This begun our Colorado. And a as of open in service second months, a acute Denver Hospital, into Intermountain hospital several will inpatient the to will area hospital

to XXXX. open facilities in these expect We

de these as to well. begin patients in care will facilities to facilities, addition novo several have that In XXXX we for JV

As in Agave Behavioral Behavioral plan to open Health. acute Health Arizona, XXX-bed Mesa, we announced, a we previously Ridge Hospital

and recently XX acres This disorders. And XXXX Madison, the services use to to the us building a to its to this we Health Behavioral expand our first in specialty allow Additionally, beds we'd to substance in future. in of expected Wisconsin. finally, open highlight includes facility of Florida. beds care near acquired Facility This like recovering facility that patients quarter facility XX Tampa treat our will plans XX acute convertible on second in new from specialty land expand will

an XX presence state in acute our CTCs Acadia's with for represents new residential XXX-bed has acute growth. the in SUD specialty our the hospital program, a market treatment novo important Acadia de entry care While

our with to care best development technology extend of in the every continue possible delivering priorities remain our care. ensure patients. As right committed for We're we the leadership to and along our implementing aspect reach, training quality right market and safety to outcomes the top we're patient

to drive We outcomes business. clinical strong have deliver made further significant technology investments our this in and year efficiencies

recent records investments compliance. teams to with in benefits medical and yielding and patient electronic early Our our medical and safety technology monitoring support respect are patient

We are of nation's the issues. XXXX. to in we the and health the company, proud quality doing are safe employees our our are need that progress treatment critical Across dedicated date extremely and and clinicians for work mental for use addressing substance

help. At continue quarter the I desperately who to XXXX positioned patients to scale call over more our Heather their this expertise results and leverage our time, We turn to will to and and are reach and families well need financial now our discuss the for guidance.

and Chris, everyone. Thanks, morning, good

during third $X.X to last 'XX reflects business performance XXXX. Relief quarter, financial continued for CARES quarter favorable Provider year. revenue third quarter The over the line of in the up by $X.X achieved company XX.X% third the Fund of recorded of Act related growth growth with established in the $XXX.X million during quarter income of third million million quarter and Our the XXXX. We the in our top the solid

quarter tax third million adjusted effects periods, the the quarter stockholder legal both for $XXX.X for PRF attributable with expenses items. of and of for compared to third related per XX.X% EBITDA with XXXX. Adjusted was the the share quarter of of XXXX of include XXXX. up from $XXX.X of diluted cost the to increased income XX.X% the diluted million the of Acadia's 'XX quarter to for income compared income settlements, impact share XXXX per Excluding for income third $X.XX of the $X.XX, for the Adjustments transaction-related third all quarter third

actuarial of quarter, an third our acceleration liability professional evaluated we reserves, our periodic the review. During including

quarter. accordingly, process during we is reserves each timing fourth and the adjust While usually review year this perform our

prudent Given reserves, we third of quarter. to litigation heightened that the it accelerate believe was to discussions regarding and review level activity the

we As deploy the capital, future in well this organic a forward. reserve are a acquisitions $X.X seeing to recorded of flexibility and increase years as investments. professional last general meaningful liability adjustment the as maintained in our line X in reserves moving increased strategy by fund to result, potential an adjustments, form item provides anticipating a financial not million. After us which position, has Acadia increases to we the growth and support strong

XXXX, leverage available revolving and $XX.X of $XXX As XX, cash our credit under with cash September a ratio approximately of million million and equivalents million net Xx. $XXX in we facility had

let this the touch described Hills briefly the Before guidance, earlier our agreements X-K week in relating turning on to X we Desert me filed lawsuits involving settlement former the facility. to company's

entire cases. We for pay believe As the are expense credit full noted step with of lines to and look Acadia $XXX possible the care court, forward all in We hand this will as portion communities and exchange a our insurance remain X-K, strong by our million are all and combination an X our any from in to and the delivery amount best is the patients, continued currently is related in claims. to growth affect less from insurance, deductible. we soon future remove that serve. associated settlement uncertainty the respect We to pay a can funds and agreements settlements after guidance, on intend positive expected of settlement execution and the the the release discharge forward And of so. to these covered families of by approved and to cash settlement see and for you our a updates aggregate attention turning existing be tax

increased our billion. $X.X in noted to In release, for our we year $X.XX in to the full expected billion which now range revenue, fact, be of have expectations press as are

to press be metrics. release refer expected is $X.XX of be adjusted Please to We $X.XX. in now range of in all to share per our the to of expected for and the million also excluding range income from $XXX the the earnings EBITDA PRF, $XXX to million adjusted are now diluted

future expenses of not transaction-related divestitures, impact of does the guidance the any income. company's the relief fund or reminder, include acquisitions, provider additional a As recognition

With that, the operator, call questions. for we're ready open to

our Instructions] with from which Whit this Leerink Mayo At first come Partners. take will will [Operator time, question, we

number the the Heather, in can think the the last fourth I changes size would the we frequency year. the claims, net accelerating process professional now claims, undertake like whether quarter. I was what liability, guys that which just driven anything annual actuarially can follow the to -- that there's reserve up have this But confirm increase, the any similar or claims, not on of in been just sounds $X is million the -- the of saw you of you

just what than reserves. this sure the not strengthening I'm other So just drove perhaps of

So additional just helpful. would be context any

than Sure, Whit. or the you'll I all process typically for I'm we the these. follow that took can the year, this $X.X of we've our we we claims a that fourth and all recorded, volume reserve or the took sure $X.X million -- we similar the quarter, we charge fourth of quarter. covers of tell quarter of was we no change same $X.X claims follow facilities that that larger you million years. last There year is that sort last the across evaluated in to remember in way and just that it actually it that was and in took

service there unpack helpful. be not noticeable out out? unpack sort question Anything one update. to Medicaid I and an the Chris, color or My that broad-based, maybe time that there's could you Is more the now would whether you've lines, maybe volumes strong, to had call the anything look Any Okay. you've redeterminations. of others. some pretty if And individual just, some learned? stands of that other than mean

preparation when our our and seeing are acute CTC. volume as say of redetermination. Specialty impact and well backstop growth you seeing advanced it's strong at have at not seen just continues this we all And and from has or Whit. say, of I is in no result, line of up, to all continues little our remind primarily RTC not have to And Pennsylvania, redeterminations the peer we us, we on both are are a because regarding a and due front, which lines acute off that No, service like bit for just protected as really also that really our for volume. they're that Medicaid back lines but as really experience is performance. that is protected. our would patient you, by different CTC. outperform county-level that as then you traces feel noticeable would to we at of service year impact I specialty volume just these then XX% the mix. driven roughly the ago much, it's look they I'd patients business, paid specialty patients our thank on the look specialty, the a significant Yes. state, time, you When and acute our And that say are there of protected state wards funding patients are unique to mechanism and is RTC Medicaid of most business, a to support up

either So our primarily I with of through treatment CTC line. us, exchanges, Medicaid, applicable self-pay are our to well. reinstatement is for another service as accessing their to there patients the would to switching payer, moving state-based sometimes And redetermination say continuing really

that state officially more obviously our completed So just which of now we country, will has started And October across redetermination. this been continue under states process final half, for -- approximately that have patients we'd and say launched we now actually all anticipate redetermination, to have X, the 'XX. estimate into XX% broadly on about redetermination Oregon, the move

be to is number 'XX a the believe Various will to the overall, that cautiously our that impact optimistic be just It the I But in going it were very closely. particularly rolls. to be states summary, company. encourage moving. off modest, and view. experience major continue summer Process bit to very, we for pause patients the this pace We're they of the the be in year and last in to aligns date very we in focus to think tracking continues continues by vary manageable. state, CMS continue a little a to came So impacts with

A.J. with Our UBS. from Rice question come next will

you was the half your in held expressed I year, of about will rates board whether some like that's gave back the sort what for wondered the you're terms you in in that major concern were there when of first you the get if payment -- and across in guidance here, I some moderate know I of just classes? give about updates but rate the maybe seems seeing the should to seeing original that well. there year, your earlier look could into payer across maybe us pretty thoughts you question 'XX

take I'll question. A.J., that Sure,

first, what So I'll say, we're from you're a right, we seeing with are pleased perspective. rate

You'll of that. that in increased seeing mid-single-digit our for sort seeing guidance of recall, strength the negotiations. that second you can year. midyear were were And on are growth rate based the I that tell of we course, half we And partly rates the we we our anticipating

more average we But that's expect ranges, And would that continue but levels to there as through that, normalized QX we seeing those all normal in rates and it's that XXXX. including Medicaid to would some CTC. to the We third seen payers, And see just XXXX. lines, see it commercial. enter across above for then continue service rate going below been as of growth markets QX. I the and expecting are in the across through. are and that, sort that you you course, those can across we strong -- in think come quarter, then tell we consistent some we that come are for of We've see increases back the the has strong results into to moderate can to had. pretty We

part, that's of health ventures deal, systems, No, the to obviously major no, I continue joint to it announced be and to My fine. hear be related you've paid the with that's lot too, so other to a last wanted seems question good. deals to would there.

that what discussions -- up going I system this suggest that this a of partner it there JVs them with discussion pandemic flavor some that to the was of a discussion post-acute now the would reaction of maybe a in driving longer, maybe health on challenges like bit was newer seeing behavioral? someone seeing? if continued the partner with these and little is I the some perception need But give you wonder to good to Is the to think services. for for that you're you're these maybe for persist of some help us are with someone what's to

and I we This if add the But see it that anything. starts think Heather Yes. to have wants Thanks, start impressive A.J. fact really referenceability. I'll is with Chris.

We from that have calls XX we as week. that interested a talking joint earlier groundbreaking getting partnership. this see to of think some ventures we And signed. that continue in they're that I we've And to partner, had others now are just in sort listed

have think I would many so there emergency they behavioral an are don't present get that that recognition a in expertise. there's that dedicated like they they that to patients room health care and recognize that increasingly

that can not frequently beds. and frequently the a help they care just looking are do them for deliver have partner they so related And

opening Day. in continues this I align I remarks pandemic, referenceability that has began our that think I marquee as accelerated. XXXX, growth. is really bed look before And it proactively growth to where the with And pathway my we a theme to significant gives do such market a we continue in that partners, So partner approach, that very continue but can our or to for identifying really And themselves visibility I out think in has our seen. that that into of think laid and part on out a joint are feel significant pipeline continued XXXX think underbedded growth work Really we we've to good. us will that the as presents in starts attractive Investor the there. But and ventures Obviously, we've continued persist. geographies that there that one be to us is laid we a be ourselves I target

with The from of next question Bank Kevin will America. Fischbeck come

that programs you that Great. outpatient providers I partial to for things and that things finalized guys in? guess something these update. like hospital be provide? health Or directly would hospitalization increasing night, that. allowing behavioral participate potentially of would up that included is the Is something and last competition set services on it the CMS that And a bunch you

front, for Kevin, not Thanks PHP is IOP Medicare question. the opportunity this say is for on there Chris. I specifically. the us would as with much

rate a the would and and see what them material we relatively to think had us, negligible apply with business increases not much in I expected. impact pretty we on the certainly but line as

quarter. quarter, the with million pretty $X impressive. I And growth, grew is charge more there there out than or not the and the the leverage the as spike volume you and have obviously, in Okay. might that then growing strong quarter anything thought the growth on that but faster, that EBITDA would rates faster And to there might there you the why in would anything side? EBITDA to quarter appreciate wages the be been really have in I Is revenue then there more highlight would margin leverage in

that did labor would just really see made see moderating. we in to I of point rate that increases the sort you to favorable reserve point we regards rates adjustment, did PLGL and

normal the we're other QX just So increase other in year our QX this that on you're that But all reserve both of on you things aside, took cadence. right mentioned. progressing fronts. well really fronts It's instead those of that we

with Hendrix next Ben will Our come from question RBC.

the the labor last what still positions lines I where activity clinical seeing screen suggested or And business wanted inflation the the seeing constraints? strongest made progress hiring you've next wage across and you're year? get for geographies to if detail I that on comments good wanted periodic you're bit are filling you're has also capacity where months. a there on expecting finally, few then areas little we your over And run to The more open front. labor get

Well, mean, I we're year. from QX and wage X.X%. what for last you in I'll that's inflation we've X.X% next QX, start gone expecting X.X% at maybe with to as from X.X% starting year know, to ultimately and

happy there. that and to some So significant progress. with we've continued see we made expect definitely progress, We're progress really

we're good that will to about specific part, a hiring labor in taking, the things We Chris we remain trends. our those with further environment talk that macroeconomic to those our the just we as ultimately feel continue in cautious path on to tandem think regards But rates that inflation move questions about to of But have and outside minute. actions taking control. I we're a overall rate in doing. we a on inflation, see the alluding we're some are our mean, we things of and are bit little that will really and and about think we reimbursement reductions that talked actions can the you're to support overall, that continue your

to will next more line to in continue to back that we come in there, put labor expect so we a February it's something guide. market other We'll the year too more will a trends. And early little with with it progress. moderate, and number make really But but come expect inflation out for solid

referencing, company a in a that turnover. I the in did in roles improvement period making, have check a just referenced a a couple that of prepared that that saw the you the reduction our would it's the that and history pretty significant in we've the in new first pulse add. I engagement. successful of We were of check number and our and of employee we we're recently have and hires survey seeing place really increasing baseline in Yes. did first think And would I we time. in helped very net say remarks, decline a put number open things there on of that drive a over a actions last short engagement year, only the and strategies to progress I been we employee

really we progress there. we're that about So the good making feel

the LPNs been onboarding the and think about intentional with helped has training turnover RNs being positions, much of for that and new us impact more really particularly factor I has clinical other employees.

of by that I pretty as the facilities to in training, in reduction training because clinical we're acquisition, we've company place programs grown think better a a historically, employees that their meaningful has we've turnover to the the upfront. own way differential managing put systematizing expectations been very do by our we and seen

RNs And impressive and saw improvement where the with -- saw this I think while LPNs. this we LPNs overall. both we most

our So of continue our as significantly with as board work we lines well team. operators to across turnover very across HR XX-day business on continue the closely to all and focus

of a more last in operators. doing much closely a year yes, our company are some certainly There with as And the just challenges question we the geographies question. department part are the much working final relationship aligned we there advantageous. are But of, to terms better within I job think very than see that Thanks your where are close having more others. more that our in of for some obviously continue being HR

Brian Jefferies. And from with next will question Tanquilut our come

some Heather, maybe you've the made. just on comments clarification already of

maybe rate a on looking that So number? should think if rate patient as maybe growth in growth moderate something per a track or forward day going as we the at basis, that I'm just of will terms SWB KPI

Yes.

If saw about And how of that we of to have And obviously basis, was and SWB contributions some then -- in function that that that included has was benefits on and startup per tracked you corporate the also cost are same-facility -- previous but aren't sort some closures. includes of typically years that. in have -- wage operations and that a normal we other contribute we patient think it it includes And growing. it day sort had in losses the day-to-day inflation, then seen there it.

different those all has it So effects.

we making. started discrepancy base of to we're the investments X were some of the those call because we between that a seeing So sort wage trends that there was out because

we're happening come If where you the day, look in inflation. SWB line at base to what's it's seeing wage other back of patient sort with starting per the with

more perspective can year. the [ the basis as XX revenue you're the continues XX line that's down from by with ] points. seeing X.X%, came to of see as actually a facility But from wage that, points It SWB down decreased course, same what basis percentage base during then you from came decline coming prior it basis, quarter. a of on in about and And X.X% a well.

Chris, question. my guess I second

speed about kind construction construction as construction to about the commercial of you macro start as and relates the of beds to we year on when seeing see you your plan X,XXX well? costs it think impact having open next I changes As or X,XXX as Are just an in beds to maybe stuff terms the any 'XX. guys in

I thank job we've it's through saw think No, Yes. working earlier we a this. mean something really to overall That's year. constantly a through. And having that good I you. question. work done spike a we're And fair in construction last costs

venture having I the helpful local it's in think with one market. joint where, a this particularly is partner partners,

that supply more of we've to about at some construction, things prefabricated get procure. our strategies So for difficult constraints that to ahead materials of the chain place with number talked got I even are of we we're think in a the that of Day Investor to some do trying

gotten the our I overall, So was certainly work and than managing that all but that our for the JV It's in we we've better on of say very XXXX we're to of at continuing it. the remarks, de through both be to it would better well prepared continue novo with growth ago -- as side it that into continued business a increasingly side optimistic I continuous consistently year have -- lines. about all talked my as

John from come with James. will Ransom question Raymond next our And

a a it basis you're know corporate you but And year some do next decelerate? about think over we to this for to do year, there's thinking Or about labor also ball inflation? kind how should year crystal full year, Just Do on next you you think on not giving -- comparison? plateau? overhead of have guidance, hit a continue think a I patient-day it's room

John, go I you things we are I it's back did. so from on that. base coming And base said, couple I we not a And that an on in take have happening in continued ball. wage do just rates. SWB wish pleased with I'll a tell and I -- to can that Heather. decline of steady crystal then the what also the rates we're day. quarter-to-quarter with per patient seeing wage line what really we're seeing

coming we'll more lap we mean, rates to declines in prior the normalized see together a we start what's think also those until continue to I inflation, rate typically of higher years, that we our line John, where as to we improvements and see some to The we good is, the feel are. I some good get about, And inflation will to improvement think and we continue about move So in question inflation. thing that that rate inflation? follow is is can that. rate we the going overall of feel normalized anticipate. with That we'll

of in all to things grow rates seen in so a ability labor like going inflation to are than our and what our seeing of feel those move we're pace tandem, stronger we've So at costs we sort you I that what corporate cost coming to is build continue can those off. there. Kind we leverage question, level of your operating we're corporate can tell that to seeing some back

portions to year, there. leverage of a full the us tell to that in It's expect see of you seeing built anticipate I you the in can And leverage mentioned. early continue of sort as a come have we those little that I to prior percentage and slightly. start will revenue. those know, continue guide to certainly of for as XXXX. year you for sort XXXX, we As of a that But that this for good sort certainly they build but are of earlier leverage year would down in we're throughout seeing come light

As you throughout months, business, off investments some we're XX good in significant know, corporate those we also we're pay pay off. the And really and in costs those ways we're level seeing corporate made in costs off. but the past the seeing seeing

of business, made whether the John, quality the improved is seeing, made investments admissions we're record our we've managed between the have marketing there care side investments the that it's quality, even in and And whether investments and we've is that Yes. add that performance the that and correlation just consistently the shown on would others. that team this I Chris. it's I think direct

one of into Heather's seen where operating focused leverage to since to is continue costs getting a the and be obviously we've we sequential this year the that very think point, decline I So beginning continue. on quarter-over-quarter and that expect corporate

efforts And there? payoff just the are early that to your And digitize seeing a any some from follow-up. of does quick project The records, you medical stand? where

John. that, on question the for thanks No, Yes.

overall, that There we elements seeing. about great continued IT think several feel investment. the we're the are of progress I

think has one of all nearly that technology in remote monitoring year-to-date. -- is facilities So we've our we the that put acute

there, patient expect improvements in promising that and in facilities we So XX we're seen and continue. incidents we've really initial to

the to On we're and as expecting half look and continuing acute specialty well implemented at standpoint. facilities -- and year EMR front, CTC EMR the an end facilities now our our deploy at we from of that now well about have as to

mean, retention who ways. they I patient up have don't. that into easier speak the and paper front to trained have we've relative I think in the relative to that don't which show that that see gotten patient we've the these which facilities think on of with of in I also unique just important. different in compliance, number that consistently the to the EMR helps to in most surveys we're a continue would engagement, speaks at that doing, come the recruit to a that see been the it time want we've improvements to from the consistently. Again, of period is environment, monitoring think strength the and better praise an benefits JVs that have opened and only norm and staff is clinicians recent surveyors engagement place health. strong our EMRs really quality on short seeing those employee as a material on behavioral seen work and differentiated other hear how we It's that benefit front to say us have we that safety the well. we're I we we really EMR And

in a continue It bit pronounced reduce you and beginning that of think be Day. that And more and benefits see that. year, to and share an coming back expect by to would expect take we're will that there later improved months time tracking paper we're little more Investor much on then all we position a certainly probably the detail our to office efficiencies the will obviously, functionality, in next more just to be

question come Cantor Fitzgerald. James will with next our Sarah And from

it like insurance payers I a to on care. to to being go to seems returning the comments a what which a XX-day with back because impact modest XX% to gap XX% is contrast XX- are saying, the getting your little in to they're wanted redetermination bit of

wondering -- if to actually close given a your coverage them to you of exposure patients that help gap active returned able take were like insurance, form and resubmit mix geographic some you're or role and So for your I'm Florida in if care? an if being and in

Yes. others to job the our prepared with kiosks in most know redetermination, we've where in excellent for started, been an I I No, do to CTC able have mean of mean I business, comparison And patients. it's working with difficult again, we to these pronounced. I individual in thank put respect extensively proactively you for just geographies. with the think place particularly facilities. the question, it's Sarah. their as we But

Many them a codes QR to lost them that had in of with where daily is their and they're coming. they've into redetermination they've our for looking -- been help. coverage Medicaid place come letter clinics We've basis tell a on up

retain to period help in to I particularly and time well. dedicated success them as -- where able where their a our get lines many to in times, for able but being with business little in -- have but of takes the instances sit actually of coverage have them support retro think line assist facilities coverage our person. Other a as And our many take I've it down we're a the also coverage patients sometimes are that lost our patient had other rate that's will well they've reapplying there people We lost through longer, we've CTC seen patients helps high will of a bit coverage.

to would our And that we able to and be coverage record who case high really track I majority within the lost of continue expect well. very a to as XX into say resolved patients XXXX have So days. have strong have continue favorably to been just a

a coming talked to an great. us opioid county could it an that on does see and level, down That's we actually once 'XX. when you've money, in it grant of county long take Can impact having you decisions? views the the line 'XX then previously to to it give get the And level And through settlement on about of idea gets how time build-out process?

very a more a It's Yes. love state, different. and have one to Every is bit expect, would you would answer a that as to. fair little we detailed question

So while states. $XX portion states, gets $X a been the billion it down counties. billion there beginning to trickle opioid total, in to in only the is only once the to individual And have small been have about then settlement distributed dollars to

with that partnered county of North specifically of communities we've single able do show everything to opioid doing we can efforts that with we've an strategies the that independent that partner things been on seen, counties to we're many showcase respect Carolina the to some to with the that, University is help deal that of country. reduction, outcomes addiction. We the these treatment to help with are in across So with to some we've for study harm the And all every place, things available individual done.

that ready. have when metrics We recognized which also best been we share. the to they're quality overall, counties talk accrediting our these for the But and doing have by CARF, strong about is CTC such partner were with to we're able that body

and that do good I to significant very be grants dollars grants a responding on that and begin very team to partner, it built housing to want -- states. But can support? capitalize to where funding emphasize think recovery well have these as they that county 'XX, rural really by flow into strong there mobile confidence to Do pure these they're we if want services will want they putting that ready county. and probably of just specialist that and continue to county Do have I distribution naloxone. it county I want to do we're they want we realistically, we're a certainly Do at programs. vary that just task laser-focused think They're mean the to trying think greater to expand we think on they just what to force they I of it's positioned there assist is together a prevalence into the 'XX vans. level. access and determine a be it

Taylor come with our from question next Gary will Cowen. And

Just confirming sense year a a And higher that showed costs just couple of of quarter, number maybe could seen in I get you million all Heather, questions. is for just a the be to growth talked is the us think number all bed burden? $XX in the to but up wanted million year sort should to bed bed next coming think know illustrative then adds your new Or X,XXX of think before? preopening than that just was commentary related even increase to that and wanted confirm, latest burden of that preopening Chris, that, given to about I $XX or you just going year, the so a we've I development. stuff we there for last 'XX? generally in that's reason a the growth next XX% about P&L, commensurate with I about

start. and ahead I don't Yes. Thanks, go Gary. Why

the the referencing Investor and showed like was additions as 'XX slide bed felt So probably Day we very that you're important one out that at just it X,XXX in to a 'XX. lay

We've X And got that online. I so building XXXX. earlier discussed hospitals in X facilities coming that we'll just be

we the JV those the Henry and other haven't Intermountain partner Ford, So partners, the X disclosed. JV that

We to beds. XXX expect those contribute about

then We this Wisconsin Ridge in also Tampa. in in one hospitals to Arizona, Agave novo Madison, and de reference several one have in

those So range. addition have facilities, contribute which And to to in discussed in past to the obviously, expansions the about beds. have we're XXX we the expecting XXX then bed been existing the

very the gets whether expand So to looking X,XXX. right even we beyond actively that XXX. we that at the are you I would can say

something highest terms can that's little a do the that more. year, think as do spending deployment we've you the a time that But question? take that on of to so we XXX hopefully, the be higher process we're want can I years helps coming think other historically in well. down. And capital the construction we that Heather, most that own those control break focused but in and one facilities, And effective and because of is around bit returns we on

I'll the of Gary, we of about we start-up At the $XX costs. that X ramp as to little bit at the which the around a QX, speak X Sure. million, Chris includes were expect open trending is see end mentioned. QX. $X.X And the what by a will of that of see to end that's pace novos year, consistent with we're similar and think de more going continue. million in we level the about to continue sort We'll QX, JVs of

of for would number ramped XXXX. of So in little half back expect already the trend that has that would we how continue pace We a up XXXX. bit that,

but it will consistent to we bed So be more directly maybe as of openings, Gary, and that construction have answer question, think with currently, where relatively it started are year to your last we be won't ramp already we we some 'XX what and with right rate. It's going the and with 'XX from we are little as the same now a higher where consistent it's year. started for

will And from with Pito Chickering come last our Deutsche Bank. question

Medicaid follow-up redeterminations. One quick more Two on questions here.

impact. weekly. at As a redetermined? been DSOs you Can [indiscernible] your you learn you has say I process build a for as up CVC patient you if the bigger believe pick has how redetermination look just sequentially slightly

has -- that collect? revenues So can't minimal of or know person's you billing there's redetermined, that X that I X been risk within you there's weeks if assume that

to Pito. state you, say really I Thank it continues Yes. would by vary state.

received we Other them. been they've much with about will moving that there have roles. patients and time, letter patients citizens work in patients some off against times, where that's to who be our to that some to copy the though in with lost period us, states happen proactively proactive of are hard even reaching where us this for will with process And beginning and their they're the is they and worked into out. our have going enables coverage, more and doesn't actually that talking and proactively us Medicaid, the they've various have on a proactively that we us to we'll them happen share with cross-reference So to come in when

shared transparent done we've with particularly have how point in the best state but to and patient's can varies states others, out So everything state. really interest, by we the is that been really that it

quick a then And enough. question. Fair modeling Okay.

day. look -- third fourth and you assume professional OpEx OpEx take at liability? professional a fourth the for quarter the patient per for for Can adjusting quarter, $X.X just take the million and quarter similar for in out we number that sorry, for out fees If

right. think I that's

been Our other operating expenses have right revenue. pretty XX% consistent, around of

million for If at you adjustment, the take of out reserve we QX. the are impact XX.X% $X.X

XX.X%. XX.X%. then was QX XXXX sequentially, with which is line And year, in QX prior of right we're So

you So to question, back answer we'll in line. yes, can your that right expect come

Chris And remarks. this concludes I'd question-and-answer our to conference session. to closing over the like for Hunter any back turn

you. Thank

So just before patients needs clinicians who safe facility across call, to meet the and the we just a committed approximately country, leaders, I of XX,XXX in and employees want work thank end our tirelessly again effective the to continued to manner. dedicated

for proven your all you a questions both for Acadia. in morning with greater don't being this We our to driving and all great for if the have additional day. directly. a please growth us today, such a strong serve Have contact value And patients strategy foundation and thank interest and delivering and we have to shareholders. We greatly us you hesitate

Thank now conference presentation. has attending you The concluded. for today's

You lines. your now disconnect may